Alternative Fuel Incentives and Law

Louisiana's Alternative Fuel Incentives and Laws

State Mandate

Alternative Fuel and Advanced Vehicle Acquisition Requirements:

The Louisiana Division of Administration must purchase dedicated alternative fuel vehicles (AFVs) capable of operating on natural gas or liquefied petroleum gas (propane), or bi-fuel vehicles capable of operating on conventional fuel or natural gas, propane, or any non-ethanol advanced biofuel. State agency vehicles may be granted a waiver if fueling stations are not available within a 25 mile radius, the agency cannot recoup the incremental cost of the vehicle within 60 months, or the available vehicles do not meet agency specifications. 

Any AFV a state agency purchases or leases must have a minimum fuel economy of 18 miles per gallon (mpg) for city driving, 28 mpg for highway driving, or a combined city/highway average of 24 mpg. Law enforcement vehicles, certified emergency vehicles, and state agency vehicles with prior written authorization are exempt from this requirement. (Reference Louisiana Revised Statutes 39:364 and 39:1646)

Louisiana 2015 Legislative Session

Louisiana Clean Fuels, the Louisiana Department of Revenue and the Louisiana Department of Natural Resources have jointly created a forum to answer your questions about legislation from the 2015  Regular Legislative Session that affect alternative fuels stakeholders in Louisiana. Act 147 and Act 125 both will have a significant impact on your operations. Each new Act has been assigned a contact person within the Department of Revenue who is a specialist in the corresponding subject matter to answer your questions about how the new rules will be administered.

The Department of Revenue will compile all the questions and answers received on these support lines. The FAQ Document will be made available here on the LCF Website as well as on the LDNR and LDR Websites.

Changes to the Special Fuels Excise Tax - ACT 147:

Act 147 Beginning January 1, 2016, LDR discontinued the annual decal program and instead collect a special fuels tax of $0.16 per gallon equivalent of natural gas at the time fuel is dispensed or delivered into the tank of a motor vehicle based on the special fuel's energy content as follows:

  1. Diesel gallon equivalent for liquefied natural gas (LNG) is equal to 6.060 lbs. of LNG.
  2. The gasoline gallon equivalent for propane (LPG) shall be energy equivalent rate equal to 73% percent of the state tax per gallon on gasoline and diesel fuel.
  3. Gasoline gallon equivalent for compressed natural gas (CNG) is equal to 5.660 lbs. of CNG.
  • Decals will continue to be issued through Dec. 31, 2015, for vehicles that use special fuels in order for the taxes due on the fuel to be paid. The amount of the decal is being calculated at a rate of one-twelfth of the total annual decal amount for each month the decal is valid. Refunds will be issued starting in January 2016 for renewals & new applications.
  • Dealers must register with LDR and post a $50,000 bond or an amount equal to 3 months’ tax liability, whichever is greater. 
  • R.S. 47:818.112 requires the tax to be collected by any person or entity upon the delivery of the fuel into the fuel supply tank of a motor vehicle. R.S. 818.112(B) imposes the tax on the delivery of fuel into the supply tank of a motor vehicle by a special fuel fleet dealer or other dealer not in connection with a sale. 
  • The return is due by the 20th of the month.
  • Licensed dealers are entitled to a 1/3 of 1% discount for the expense of collecting, accounting for, reporting and timely remitting the taxes collected and for keeping records.
  • For gasoline and diesel--Reduces the administrative discount to supplier for filing returns and remitting payment timely from one and one-half percent to one-half percent and reduces the deduction from 1% to one-third of 1% for licensed distributor or importer. See RIB 15-022.


Questions about Act 147 can be directed to Shanda McClain 225-219-2780 or the Policy Services Excise email address: pracexcsevtaxpolicyinquiries@la.gov

 

Tax Credit for Conversion of Vehicles to Alternative Fuel Usage:

Act 125 of the 2015 Regular Legislative Session amends La. R.S. 47:6035(C)(1) to change the tax credit for conversion of vehicles to alternative fuel usage from 50 percent of the cost of the qualified clean-burning motor vehicle fuel property to 36 percent.

In addition, currently, according to La. R.S. 47:6035(D), if a taxpayer is unable to or elects not to determine the exact cost attributable to such qualified clean-burning motor vehicle fuel property, the taxpayer may claim a credit equal to 10 percent of the cost of the motor vehicle or $3,000, whichever is less. Act 125 changes those amounts to 7.2 percent of the cost of the motor vehicle or $1,500, whichever is less. See RIB 15-011.

Questions about Act 125 can be directed to William Little 225-219-2780 or the Policy Services CIFT email address: PracCIFTPolicyInquiries@La.GOV

AFDC's Website: Federal & State Incentives Search
 Funding Opportunities
 LDNR's Website: Louisiana Alternative Fuel Incentives and Laws